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September 06, 2017

How to hire LPM staff (Part 1 of 2)

When firms decide to make a serious commitment to LPM by hiring internal LPM staff, they must answer two questions:

  1. How should we define the job of the LPM Manager?
  2. Who is the best person to fill the job?

The position of LPM Manager is so new that both questions are much more difficult to answer than you might expect.

Some LPM Managers have been much more successful than others, due to a combination of management support, firm culture, and the background and personal characteristics of the individual who fills the position.  For an overview of how some of the most widely known LPM directors have defined the job, see the results of our research on the evolving role of LPM directors in this blog.

Quite frankly, in our survey of LPM directors at 15 large firms, it appeared that even within this group there are wide differences of opinion on how to define the job.  For example, some LPM Directors spent an enormous amount of time on evaluating and implementing new software, while others focused on more effectively using the software the firm already owned.  (We recommend the second approach.) 

Perhaps these differences of opinion are related to the high turnover rate for LPM Directors.  A year and a half after we published our research, we went back to LinkedIn to see how many had moved into different jobs.  33% of the people we had interviewed – 5 out of 15 – had changed employers in this 18 month period. (Three of the five had moved to different law firms, and two had gone to in-house law departments.)

In any case, the titles of two thirds of the people we interviewed included both pricing and LPM, but the vast majority of these 15 people spent most or all of their time on pricing.  One reason for this emphasis is that most groups were understaffed, and senior management often mandated an emphasis on pricing first.  It is much easier to get lawyers to agree to bid a particular fee than it is to convince them to change the way they practice law so that they actually deliver services within that amount.

In our view, both pricing and LPM are extremely important for long-term financial success.  To remain profitable, firms must both charge the right price and get lawyers to deliver services within that price. 

However, we also believe that if limited resources force one to choose between the two, LPM is ultimately more important than pricing.  These days, the fees that firms are able to charge are often determined more by competitive bidding than by thoughtful analysis.  And the best pricing function in the world does little good if lawyers consistently exceed the amounts they bid.

Once the job description is defined, the next question is how to identify the best candidate. 

Seyfarth Shaw has probably been hiring project managers for longer than any other law firm.  In the article “Lean and agile – How LPM can transform client services” (which appears in Ark’s recently published book  The Lawyer’s Guide to Legal Project Management), Seyfarth senior managers Karen Dalton and John Duggan have noted that “One of the biggest challenges can be finding people with the right skill set to perform the role of Legal Project Manager.”

The fundamental problem in finding qualified candidates is that as the demand for LPM has increased in the last few years, so has the demand for LPM staff.  Almost every firm starts their search by looking for people with prior LPM success at other law firms, which makes perfect sense.  The difficulty here is that the LPM Director position is so new that only a very small number of candidates meet this criterion.  And people in this group also tend to be highly compensated due to high demand and low supply.

In Part 2 of this series, we will recommend five criteria for evaluating potential LPM staff.

This series was adapted from the fifth edition of the Legal Project Management Quick Reference Guide, a frequently updated online library of LPM tools and templates.

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